Insurer alleges fraud by 'Ask Gary' service

Published: Monday, July 29, 2013 at 11:26 p.m.

Last Modified: Monday, July 29, 2013 at 11:26 p.m.

Florida's largest auto insurer is accusing Sarasota chiropractor Gary Kompothecras of using the "1-800-Ask-Gary" referral service he founded to orchestrate a "massive fraud scheme" and obtain lucrative insurance payments.

Sarasota chiropractor Gary Kompothecras is the founder of "1-800- Ask-Gary." His lawyer calls the lawsuit frivolous and malicious.

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In a lawsuit filed in federal court, State Farm said it has paid more than $19 million since 2005 in no-fault benefits to Physicians Group of Sarasota LLC, whose 25 clinics owned by Kompothecras treat patients referred by Ask Gary.

State Farm contends that since some of those patients were obtained by Physicians Group through "unlawful means," the services and treatments rendered also were not legal.

"In fact, it is secretly owned and controlled by Kompothecras and exists to unlawfully steer all unwitting callers to Kompothecras' own clinics, the Physicians Group clinics, and to personal injury attorneys who pay fees to Ask Gary to obtain client referrals and, at least in some instances, secretly agree to refer their clients to the Physicians Group clinics," the lawsuit states.

An attorney for Kompothecras — a Siesta Key resident and member of the Sarasota-Manatee Airport Authority — blasted the lawsuit as "frivolous and malicious."

"This suit is a desperate act by State Farm, one of the largest and most profitable insurance companies, who owes Physicians Group over $9 million by its failure to pay over 1,000 claims for medical costs incurred by its policy holders," said Marty Singer, an attorney in Los Angeles.

The lawsuit contends Kompothecras and his company have violated the Florida Patient Brokering Act, the Anti-Kickback Act and the Self-Referral Act.

State Farm is seeking more than $480,000 in damages, the amount of no-fault benefits it paid to Physicians Group for services to patients who were "unlawfully obtained" through Ask Gary.

Singer said the lawsuit was filed in response to a recent Florida Supreme Court decision that ruled against insurers' failure to pay their customers and providers for some medical costs.

The 52-page lawsuit, filed Friday in U.S. District Court in Tampa, claims no patient was ever referred by the Ask Gary service to a health care provider other than Physicians Group.

But Singer called that a "blatant lie," saying a "great number" of callers to Ask Gary are not referred to the group.

The lawsuit cites a former attorney with Winters & Yonker — a Tampa law firm whose principals were suspended last year for ethical violations — who stated Kompothecras required attorneys who received referrals from Ask Gary to send clients to his clinics.

Winters & Yonker represented more clients who filed claims with State Farm for treatment at Physicians Group than any other law firm in Florida, the insurer said.

Singer responded that attorneys in the Ask Gary network are not advised or required to refer any of their clients to Kompothecras' clinics.

"This is a condition contained in the attorneys agreement with the Ask Gary network," Singer said.

Ask Gary has been investigated by the Florida Bar Association at least twice, the lawsuit states. In 2007, some lawyers were cited for obtaining clients through improper advertising. In 2011 the bar recommended new rules to prohibit lawyers from accepting client referrals from any service that also refers to other professionals, such as health care providers.

In addition to Physicians Group, the lawsuit also named affiliated businesses WS Marketing, WS Media and DB Medical Consulting, all located at the same Sawyer Road location as Physicians Group. Since 2007, WS has owned the Ask Gary brand, according to the lawsuit.

William Sigelakis, who owns the WS businesses, and David Balot, owner of DB, also were named in the litigation.

<p>Florida's largest auto insurer is accusing Sarasota chiropractor Gary Kompothecras of using the "1-800-Ask-Gary" referral service he founded to orchestrate a "massive fraud scheme" and obtain lucrative insurance payments.</p><p>In a lawsuit filed in federal court, State Farm said it has paid more than $19 million since 2005 in no-fault benefits to Physicians Group of Sarasota LLC, whose 25 clinics owned by Kompothecras treat patients referred by Ask Gary.</p><p>State Farm contends that since some of those patients were obtained by Physicians Group through "unlawful means," the services and treatments rendered also were not legal.</p><p>Ask Gary is neither an independent nor a "legitimate medical and legal referral service," the lawsuit said.</p><p>"In fact, it is secretly owned and controlled by Kompothecras and exists to unlawfully steer all unwitting callers to Kompothecras' own clinics, the Physicians Group clinics, and to personal injury attorneys who pay fees to Ask Gary to obtain client referrals and, at least in some instances, secretly agree to refer their clients to the Physicians Group clinics," the lawsuit states.</p><p>An attorney for Kompothecras — a Siesta Key resident and member of the Sarasota-Manatee Airport Authority — blasted the lawsuit as "frivolous and malicious."</p><p>"This suit is a desperate act by State Farm, one of the largest and most profitable insurance companies, who owes Physicians Group over $9 million by its failure to pay over 1,000 claims for medical costs incurred by its policy holders," said Marty Singer, an attorney in Los Angeles.</p><p>The lawsuit contends Kompothecras and his company have violated the Florida Patient Brokering Act, the Anti-Kickback Act and the Self-Referral Act.</p><p>State Farm is seeking more than $480,000 in damages, the amount of no-fault benefits it paid to Physicians Group for services to patients who were "unlawfully obtained" through Ask Gary.</p><p>Singer said the lawsuit was filed in response to a recent Florida Supreme Court decision that ruled against insurers' failure to pay their customers and providers for some medical costs.</p><p>The 52-page lawsuit, filed Friday in U.S. District Court in Tampa, claims no patient was ever referred by the Ask Gary service to a health care provider other than Physicians Group.</p><p>But Singer called that a "blatant lie," saying a "great number" of callers to Ask Gary are not referred to the group.</p><p>The lawsuit cites a former attorney with Winters & Yonker — a Tampa law firm whose principals were suspended last year for ethical violations — who stated Kompothecras required attorneys who received referrals from Ask Gary to send clients to his clinics.</p><p>Winters & Yonker represented more clients who filed claims with State Farm for treatment at Physicians Group than any other law firm in Florida, the insurer said.</p><p>Singer responded that attorneys in the Ask Gary network are not advised or required to refer any of their clients to Kompothecras' clinics.</p><p>"This is a condition contained in the attorneys agreement with the Ask Gary network," Singer said.</p><p>Ask Gary has been investigated by the Florida Bar Association at least twice, the lawsuit states. In 2007, some lawyers were cited for obtaining clients through improper advertising. In 2011 the bar recommended new rules to prohibit lawyers from accepting client referrals from any service that also refers to other professionals, such as health care providers.</p><p>In addition to Physicians Group, the lawsuit also named affiliated businesses WS Marketing, WS Media and DB Medical Consulting, all located at the same Sawyer Road location as Physicians Group. Since 2007, WS has owned the Ask Gary brand, according to the lawsuit. </p><p>William Sigelakis, who owns the WS businesses, and David Balot, owner of DB, also were named in the litigation.</p>